Calls for more support for higher education in Yorkshire after 13 UK universities 'could go bust’

The call to action comes after an estimated 13 universities across the UK could end up substantial losses by 2024, the Institute for Fiscal Studies (IFS) research suggests.

High-ranking universities with large numbers of international students face the largest immediate drop in income but the least prestigious universities are at the greatest risk, says the IFS.

The research doesn’t name individual institutes, but estimates that 13 universities out of the UK's 165 higher education institutions, would end up with accumulated losses "and thus may not be viable in the long run without a government bailout or debt restructuring."

Dr Peter O'Brien, the executive director of the charity Yorkshire Universities, has called for more support for the universities in the region as the fallout from the coronavirus pandemic poses a "significant financial threat" across the UK higher education sector.

Dr O’Brien told The Yorkshire Post: "We need some support to get through what is clearly a very difficult time.

"We’ve got to build something that is more sustainable, more durable, more resilient, than what we’ve had at present.

"Universities have been critical in the response phase to the coronavirus pandemic. Clearly there is a case for support as we move into recovery."

"We want to see more of that investment as a group of universities in Yorkshire coming to our region. We think that it is the right thing in order for the economy to progress," he said.

In a challenge to Boris Johnson’s levelling-up agenda, Dr O’Brien said that this funding gap could drive education and innovation inequalities.

"It’s part of growing our economy, closing the gap with London and the greater South East," he said.

"Those places that have been caught left behind need resources, need support to build something that is much more durable, resilient and sustainable then what we have had at present."

Sir Chris Husbands, chair for the Yorkshire Universities and vice-chancellor of Sheffield Hallam University, told The Yorkshire Post the Government's response will be critical in determining the future of the sector as a whole.

Professor Husbands, 61, who also plays a major role in a regional think-tank, said: "There is no doubt that the consequences of Covid-19 poses an enormous challenge for the sector as a whole.

"A town that loses it’s university is not a pleasant experience. I think the Government does in its heart know that."

Prof Husbands said: "They are enormous in terms of lost jobs, lost opportunities, the loss of services to the community.

"My request to government is - think about the diversity of the sector and support the full range of universities."

A spokesman, from the Department for Education, said: "We understand this is a very challenging time for universities and higher education staff, which is why we have introduced a package of measures to stabilise the sector, help universities manage their finances to avoid cash flow problems and safeguard students."

The Department of Education also confirmed universities’ are eligibility to apply for the Government-backed packages worth at least £700m according to Office for Students estimates, along with bringing forward £2.6bn worth of tuition fee payments.

To stabilise the university research base, the Government is also investing £280m into grant extensions for research impacted by coronavirus and covering up to 80 per cent of a university’s income losses from international students for the academic year 20/21 for research-active universities.

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